Transparency of Currency Board Operations

The HKMA has been disclosing the forecast change in the
Aggregate Balance attributable to the HKMA's foreign exchange
transactions on its Reuters page on a real time basis since June
1998. This measure enables market participants to anticipate
changes in liquidity conditions in the interbank market and
facilitates a more efficient adjustment in the interbank interest
rates. Details of the entire Monetary Base and a breakdown of its
components are published on the HKMA's Reuters page every day.
Information on the
Monetary Base and
Interbank Liquidity are released daily on the HKMA website.

A Currency Board Account has been published every month since
March 1999. The Account shows the Monetary Base on its liabilities
side, and the backing assets on its assets side. The publication of
the records of discussion of the EFAC Currency Board Sub-Committee
and the Currency Board Account demonstrates the HKMA's compliance
with Currency Board principles and promotes public confidence in
our monetary system.